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Board adopts stricter school-foundation MOU with 10% administrative cap after CCA audit concerns
Summary
The San Diego Union High School District unanimously approved a revised memorandum of understanding for school-affiliated foundations setting a 10% administrative fee cap and new transparency and donor‑choice rules, following student-led audits and community pressure over Canyon Crest Academy foundation practices.
The San Diego Union High School District Board of Trustees on March 11 unanimously approved a revised memorandum of understanding (MOU) that tightens oversight of school-affiliated foundations and caps administrative fees at 10 percent.
The agreement, presented by district business staff, standardizes financial reporting, clarifies facility-use and rental-fee rules, and requires an opt-in or opt-out mechanism for donor-restricted gifts. Associate Superintendent of Business Services told the board the 10% fee is fixed (not “up to”) and will be revisited in January 2027.
The revision was prompted in part by student investigators and an independent audit that flagged questions about the Canyon Crest Academy Foundation’s prior practices, including facility rentals. ‘‘This change was initiated by our students,’’ said Dr. Mingu, who urged the board to adopt enforcement measures so the MOU is not ‘‘just words on the paper.’’ Several parents and watchdog groups echoed that call, asking the district to publish which foundations have signed the agreement and to specify consequences for noncompliance.
Supporters said the revised MOU responds to community concerns that donor funds be used primarily for students and not eaten by high overhead or opaque transactions. One parent speaker said setting the administrative fee at 10% will encourage donors because ‘‘people see more of their hard‑earned money going directly to the kids.’’
Board members emphasized the collaborative drafting process with foundation representatives, and trustees credited parent and student advocates for driving the reforms. The board directed staff to circulate the MOU to each foundation and seek signatures ‘‘as soon as reasonably possible,’’ with staff estimating most foundations could return signed agreements within about 45 days.
The board’s action leaves enforcement details to follow; several speakers urged the district to publish periodic compliance updates and, if necessary, consider alternative partners for schools whose foundations refuse to sign.
What’s next: District staff will send the MOU to all school foundations and report back on signatures and compliance steps as the administration develops an oversight plan.
Provenance: Topic introduced SEG 2400; discussion and vote concluded SEG 2592–2658.
